Tech Desk: Meta is reportedly gearing up to enter the burgeoning prediction market space with a new standalone app internally codenamed ‘Arena’. This move signals a significant diversification beyond its core social media offerings like Facebook and Instagram, aiming to tap into a rapidly growing sector.

The Arena app is envisioned as a platform where users can make predictions on future events across categories like sports, elections, and entertainment. Instead of real money, early versions will likely reward users with points, badges, or rankings, fostering a game-like experience. While the initial focus is on non-monetary rewards, Meta may eventually introduce real-money betting, mirroring the success of platforms like Polymarket and Kalshi, which have facilitated billions in transactions.

This isn’t Meta’s first foray into prediction markets; the company previously launched ‘Forecast’ in 2020, which failed to gain significant traction and was shut down in 2022. However, the landscape has evolved, with prediction markets showing increased interest and substantial market volume.

Leveraging its vast user base across its existing apps – Facebook, Instagram, WhatsApp, and Messenger – Meta aims to give Arena a significant initial boost. The company is also reportedly developing ‘Meta Photos,’ an AI-powered content creation app, indicating a broader strategy of exploring new product categories beyond its established social networks. The success of both Arena and Meta Photos remains uncertain as they are currently in the experimental phase.